Ann: Trading Update, page-3

Another very solid quarterly.

1.Ounces produced, about what could have been expected, but it looks like the 575K target is realistic. Production is slightly down compared to the previous quarterly, so probably the trend for output from some mines is decreasing slightly, which will be replaced or more likely even be increased once Pegasus comes on stream.

2.AISC a little higher than expected (what exactly are this non cash items/site rehabilitation liabilities ?-we already had them last quarter)
I do wonder how Plutonic is doing. This was the only mine, which had me a little worried last quarter due to higher than expected AISC.

3.Cash flow is great considering the low POG environment in the last quarter and i am happy with the balanced approach of reducing debt (15M), increasing cash (19M),exploring (10M) and paying dividends (14.5M)
Considering the current POG, NST cashflow this quarter will be about 13-14 Mio higher than the last one, if AISC stay the same. Which clearly leads to the question, what will they do with all this extra money, they can't just continue to stockpile money in their bank accounts. Either they buy yet another mine (BB said this was not their top priority) or they give it back to shareholders, i.e. increase dividends.
It is also clear that the debt we have will be erased in the next couple of months, freeing another 15 mio/quarter, which could also lead to another increase in dividends if management doesn't decide to acquire more mines.

Combined with the drilling results from yesterday, NST is very much on track to deliver shareholder returns and i am more than happy that i jumped into this one last december after they acquired Plutonic.
IMO a clear outperformer in the gold sector in the years to come, as there are very few competitors which increased exploration so significantly like NST. A clear advantage of a clean balance sheet. If BB (and team) keep their promise, "that this is all about shareholder returns and not tonnes or ounces" (and right now that is exactly what NST is delivering) i guess i will probably be a shareholder for the next years, enjoying the ride upwards ;-)